Is India HEADED for MORE TAXES and HYPER INFLATION? ( MUST READ FOR EVERY INDIAN).

December 1, 16

Is India HEADED for MORE TAXES and HYPER INFLATION? ( MUST READ FOR EVERY INDIAN).

Greetings from Hitesh! November 2016 will be known as the most eventful month in the Indian History. Generations will remember 8 p.m. of 8^th November 2016 / Narendra Modi and Demonetisation.

What is the GENERAL MOOD Post Demonetisation?

The NORMAL people are suffering like anything but they are HOPEFUL for better future – ACHHE DIN. They are being told to see this as ONE TIME TROUBLE for LIFE TIME PEACE of Mind.

With the Banks are flush with CASH, expectations are there for RATE CUT by RBI  / Lower INTEREST RATES / Lower TAXES for MASSES / some are expecting that INCOME TAX will be removed and things like that. If you check MEDIA - People are being SOLD DREAMS about coming better days with the removal of CURRUPTIONS / BLACK MONEY / and bringing CASHLESS ECONOMY.

Demonetisation has not REMOVED the POVERTY but made RICH guys also POOR. So, there is overall POVERTY in India as on today. But NO MEDIA talks about this issue. Today I am going to talk about ECONOMIC SITUATIONS of India GOING FORWARD.

WHAT WE HAVE SAID IN The RECENT MONTHS?

On Tuesday, October 4, 16, we wrote Understand ASTROLOGICAL Forces behind Surgical Strike / IT Raids and Coming period – we had categorically said –

OVERALL HAPPINESS of COUNTRYMAN:-

4^th house is aspected by RAHU and SATURN. MARS will join from 3^rd November. They will have to SUFFER from POLITICAL moves or Natural calamities.

We are proved 100% correct and Indians are suffering from POLICTICAL MOVES.

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On October 14, 16, we wrote - World is facing DEFLATION, in spite of MONEY PUMPING by USA and other countries and we are talking about HYPER INFLATION. Why?

In the same we explained how GDP is made up.

Read this BASIC economics –

Let us see HOW GDP is determined in the simplest way?

Say there is a small country of 10 people and the money supply is Rs.1. Each one gives Rs.1 to other for the services or goods the other guy is giving and there bye money multiplier is 10 times.

Money stock * Money multiplier = GDP

 Rs.1 * 10 times = Rs.10.

Now say Govt starts pumping money and increases the money supply to Rs.10 but money multiplier comes down to say 1 time. So, we have….

Money stock * Money multiplier = GDP

 Rs.10 * 1 time = Rs.10.

What WILL happen in India due to DEMONETISATION?

Money multiplier of Indian economy, which RBI was claiming to be in the region of 4-5 will come down DRASTICALLY.

When money multiplier comes down – in spite of lot of money (as banks are flush with cash) – economy will not GROW. Just see above example – money stock has moved up from Rs.1 to Rs.10 but GDP is still Rs.10 as multiplier has come down from 10 times to 1.

What are the GROUND REALITIES?

Govt will generate one time income from TAX on HIDDEN INCOME / PENALTY and other taxes. It will give the effect of being RICH for the time being. It does not give any CLUE how India will earn tomorrow.

Many times when you sell your ANCESATRAL PROPERTY – it adds to your PRESENT INCOME and you FEEL RICH for the time being. Your feeling of RICHNESS now has no guarantee that you will be RICH tomorrow also!! Something like that is happening with INDIAN GOVT.

Demonetisation has killed the overall ECONOMY – whether you like to accept or not. Let me share some of the examples of how money is WASTED due to wrong policy measures.

1)  Many guys have converted their CASH into GOLD at a NONSENSE price of Rs.50000 to Rs.65000 as reported in MEDIA. The CASH, which was in circulation, has gone into GOLD. Now, it will not come into business for long time, as people will hold GOLD till they see profit. So, Money Multiplier will come down.

2)  Some people have bought GROCERY and MEDICINES with old notes for 3 to 6 months in advance. Shopkeepers are HAPPY NOW, but these guys will not come to their shops for coming 3-6 months. These have two disadvantages – the cash, which could have been productively employed by NORMAL guys, went to buy MEDICINES and GROCERY in advance (locking the CASH) and Shopkeepers will have uneven income in coming months. This will reduce the MONEY MULTILIER in the system like anything.

3)  Many guys have paid ADVANCE SALARY to their EMPLOYESS in CASH. These SMALL guys have deposited this in the BANKS. Now, they know that they are not going to get NEW SALARY for coming 3-6 months – they will hold their money TIGHT. So, their discretionary spending will also not come. Money multiplier will reduce due to this also.

4)  NORMAL people who do not have BLACK MONEY are FEARED by use of THRETENING language by MR.MODI. Now, they will watch their BIG spending. They may postpone it or cancel it for the time being. These will also reduce the MONEY MULTIPLIER.

5)  The Government has given 50 days time. Most BIG guys are busy settling their CASH and most SMALL guys are BUSY standing in BANK QUEUE. 2 months of PRODUCTIVITY LOSS to the country!! This will also reduce the MONEY MULTIPLIER.

We can add many such GROUND REALITIES in the list. But the point is - overall there would be NEGATIVE IMPACT on INDIRECT TAX collection. In the NEXT BUDGET DIRECT TAX collection will also come down!!

How Do I see the SITUATION of Indian Government Going forward?

They are feeling RICH now. But above ground realities is making me skeptical about there long lasting happiness.

I had predicted that people would suffer due to POLITICAL MOVES or NATURAL CALAMITIES. We are already suffering due to POLITICAL MOVES, now the NATURAL CALAMITIES in India or WORLD MARKET – will ADD FIRE TO THE FUEL.

From January, 2017, SATURN will be transiting from 8^th house of India’s independence chart for 30 months and some NEGATIVE EVENTS taking place will not surprise me. The GOVT will be forced to increase the TAX RATES!! (All experts who are positive with demonetization NOW and are expecting TAX RATE CUT may go 100% wrong)

8^th house is a HOUSE of DEATH / DESTRUCTION and TAX. SATURN will make it happen ALL!! So, do not RELY on hope for low TAXES.

How INFLATION will move up?

BLACK MONEY has died temporarily and not the BLAK MONEY MAKERS. They will simply jack up the prices of FOOD PRODUCTS and NECESSITIES. We have paid Rs.220 per KG for TUR DAL in recent past. With the low MONEY MULTIPLIER – production will also come down!! So, there will be logical reasons to increase the prices also.

HIGH TAX RATES / STRICT COMPLIANCE / HIGH PRICES of NECESSTIES and LOW INCOME or NO INCOME will KILL the NORMAL GUYS in coming times.

What is the WAY OUT?

SILEVER LINE in the DARK is SHARE MARKET. On November 22, 16, we had written our post - December 2008 V/s. December 2016 – Same SITUATIONS  – are you ready to GRAB the OPPORTUNITIES?

In the same we had said – we see market making new highs in coming 4 months. In the same we had also said - If the ECONOMY is not performing, as expected by many, it will make double sense for MODI Govt., to keep the SENSEX up to create the ILLUSION of ECONOMIC PROGREESS by HIS GOVERNMENT. (NEPTUNE will help in creating illusion).

After our call MORGAN STNELY is saying there is 30% chance that SENSEX can touch 39000 levels.

Overall MARK MOBIUS / FIIs are positive for SHARE MARKET.

What it MEANS for NORMAL GUYS?

If you are having a set back in your business or job due to political moves – just relax. DESTINY has opened a NEW WINDOW for you to make money and sustain your life. All you need is to LEARN THE FINE ART OF INVESTMENTS and master it over a period of time. Faster you can do – better for you.

Nobody is talking about ECONOMY and INFLATION Now. As usual, I am the first to talk about it so categorically. Use this information as indication of DESTINY in your life and change your ways NOW. DECIDE TO INVEST NOW. You will bless me for LIFE.

If you want help in Investing In Indian MARKET – do approach me.

Wish you HAPPY Investing.

Follow me on Twitter @hiteshmparikh / WhatsApp - +91-9869425399 / www.hiteshmparikh.com

Live With Passion…Invest With Passion.

Hitesh Parikh.

www.hiteshmparikh.com